HSBC says FY27 Could Be ‘Worst Year’ for Indian IT Amid AI Pricing Pressure

HSBC has warned that AI has shifted from tailwind to structural threat for India’s IT services industry, eroding its labour‑arbitrage model. Analyst Yogesh Aggarwal said 15–20% of revenues already face AI‑driven pricing pressure, rising to 35–40% by FY27, which he expects to be the “worst year” with 0–2% growth. Recovery is seen only by FY28–29. JPMorgan also projects slower 3–4% growth, while Indian IT firms ramp up AI hiring despite sector gloom.